Chinese bank shareholders baulk at ‘carte blanche’ Covid-19 donations to country
蘋果日報 2020/06/20 09:21
Individual shareholders of Hong Kong-listed Chinese banks have expressed worries that the banks' management are committing to unlimited aid to help the mainland fight the Covid-19 pandemic using their money.
China Construction Bank and the Industrial and Commercial Bank of China — both among the four largest banks by asset value in China and the world — passed resolutions at their respective shareholders' meetings this year to donate to the mainland's disease relief efforts.
In view of the pandemic this year, the CCB management proposed to add 53 million yuan (US$7.48 million) to its annual budget of up to 100 million yuan (US$14.12 million) reserved for charitable causes.
The proposal also asked shareholders to grant the management the power — in effect until December 31 — to buy supplies for disease relief, without specifying a cap on the purchase expenses. The proposal was passed with 99.68% of votes at a shareholders' meeting on Friday this week.
The ICBC also passed a similar resolution at its shareholders' meeting on Friday last week. The lender would donate another 62.29 million yuan (US$8.79 million) to help the mainland's fight against the coronavirus.
Individual shareholders of CCB told Apple Daily that the management had asked shareholders to vote on a vaguely worded proposal that amounted to offering the state a blank check.
"If the money is spent on buying masks, you should at least tell us how much you plan to spend,” they said. “Now they are donating 50 million yuan. God knows whether they will spend 1 billion yuan to buy medical supplies later on."
CCB did not respond by press time to Apple Daily's request for comment.
Past records show CCB, ICBC and the Agricultural Bank of China usually reserve an annual budget of 100 million yuan each as donations to causes that correspond to the Chinese government's policy priorities.
Roy Lo, executive vice-president of the Hong Kong Independent Non-Executive Director Association, said that while donations to charitable causes were a core part of a listed company's corporate social responsibility, the vaguely worded proposals were confusing to individual shareholders.
Lo said that to address individual shareholders' worries, CCB and ICBC should publicize the amount and beneficiaries when making donations.
China Construction Bank and the Industrial and Commercial Bank of China — both among the four largest banks by asset value in China and the world — passed resolutions at their respective shareholders' meetings this year to donate to the mainland's disease relief efforts.
In view of the pandemic this year, the CCB management proposed to add 53 million yuan (US$7.48 million) to its annual budget of up to 100 million yuan (US$14.12 million) reserved for charitable causes.
The proposal also asked shareholders to grant the management the power — in effect until December 31 — to buy supplies for disease relief, without specifying a cap on the purchase expenses. The proposal was passed with 99.68% of votes at a shareholders' meeting on Friday this week.
The ICBC also passed a similar resolution at its shareholders' meeting on Friday last week. The lender would donate another 62.29 million yuan (US$8.79 million) to help the mainland's fight against the coronavirus.
Individual shareholders of CCB told Apple Daily that the management had asked shareholders to vote on a vaguely worded proposal that amounted to offering the state a blank check.
"If the money is spent on buying masks, you should at least tell us how much you plan to spend,” they said. “Now they are donating 50 million yuan. God knows whether they will spend 1 billion yuan to buy medical supplies later on."
CCB did not respond by press time to Apple Daily's request for comment.
Past records show CCB, ICBC and the Agricultural Bank of China usually reserve an annual budget of 100 million yuan each as donations to causes that correspond to the Chinese government's policy priorities.
Roy Lo, executive vice-president of the Hong Kong Independent Non-Executive Director Association, said that while donations to charitable causes were a core part of a listed company's corporate social responsibility, the vaguely worded proposals were confusing to individual shareholders.
Lo said that to address individual shareholders' worries, CCB and ICBC should publicize the amount and beneficiaries when making donations.
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